LEGRAND / 2018 Registration document

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CONSOLIDATED FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS, LIABILITIES, FINANCIAL POSITION AND RESULTS

CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS FOR THE YEARS ENDED DECEMBER 31, 2018 AND DECEMBER 31, 2017

R NOTE 2 – RESULTS FOR THE YEAR

2.1 SEGMENT INFORMATION In accordance with IFRS 8, operating segments are determined based on the reporting made available to the chief operating decision maker of the Group and to the Group’s management. Given that Legrand activities are carried out locally, the Group is organized for management purposes by countries or groups of countries which are allocated for internal reporting purposes into five operating segments: W France; W Italy; W Rest of Europe, mainly including Benelux, Germany, Iberia (including Portugal and Spain), Poland, Russia, Turkey, and the United Kingdom;

W North and Central America, including Canada, Mexico, the United States, and Central American countries; and W Rest of the world, mainly including Australia, China, India, Saudi Arabia and South America (including particularly Brazil, Chile and Colombia). These operating segments are allocated to three geographical segments: Europe, North and Central America, and Rest of the world, each of which are under the responsibility of a segment manager who is directly accountable to the chief operating decision maker of the Group. The economic models of subsidiaries within these segments are quite similar. Indeed, their sales are made up of electrical and digital building infrastructure products in particular to electrical installers mainly through third-party distributors.

Geographical segments

Europe

North and Central America

Rest of the world

12 months ended December 31, 2018 (in € millions)

France

Italy Rest of Europe

Total

Net sales to third parties

1,032.4

578.8

978.3

2,223.2

1,184.5

5,997.2

Cost of sales

(392.8)

(197.5)

(546.8)

(1,069.6)

(663.0)

(2,869.7)

Administrative and selling expenses, R&D costs

(414.1)

(165.8)

(242.9)

(746.4)

(314.1)

(1,883.3)

Other operating income (expenses)

(28.7)

(4.2)

(7.7)

(29.5)

(35.1)

(105.2)

Operating profit

196.8

211.3

180.9

377.7

172.3

1,139.0

W of which acquisition-related amortization, expenses and income W accounted for in cost of sales W accounted for in administrative and selling expenses, R&D costs W accounted for in other operating income (expenses)

0.0

(1.2)

(0.2)

(4.7)

(53.6)

(11.2)

(70.9)

0.0

0.0

(2.2)

0.0

0.0

(2.2)

W of which goodwill impairment

0.0

Adjusted operating profit

198.0

211.5

187.8

431.3

183.5

1,212.1

W of which depreciation expense

(26.8)

(17.6)

(14.3)

(19.3)

(23.8)

(101.8)

W of which amortization expense

(2.6)

(4.5)

(0.5)

(2.8)

(0.9)

(11.3)

W of which amortization of development costs

(17.6)

(7.4)

(1.9)

0.0

(1.2)

(28.1)

W of which restructuring costs

(6.9)

(1.5)

(2.7)

(4.4)

(12.4)

(27.9)

Capital expenditure

(46.1)

(28.5)

(26.3)

(22.0)

(27.7)

(150.6)

Capitalized development costs

(21.0)

(9.0)

(1.8)

0.0

(1.9)

(33.7)

Net tangible assets

194.8

125.5

94.5

119.1

127.5

661.4

Total current assets

844.9

155.0

477.0

647.3

747.4

2,871.6

Total current liabilities

739.8

205.7

131.9

320.3

390.8

1,788.5

264

LEGRAND

REGISTRATION DOCUMENT 2018